Largest Closing Costs Typically Paid by Sellers in Washington D.C.
In Washington D.C., closing costs typically range from 2% to 5% of the property’s sale price. These costs encompass various expenses associated with finalizing the sale, including transfer taxes, title insurance, recording fees, and attorney fees.
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Transfer Tax: The transfer tax, also known as the recordation and transfer tax, is a fee imposed by the District of Columbia on the transfer of real estate ownership. The tax rate is split between the buyer and the seller. For residential properties under $400,000, the buyer pays 1.1% of the sale price and the seller pays 1.45%. For residential properties greater than $400,000, the buyer pays 1.45% of the entire amount and the seller pays 1.45%.
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Title Insurance: Title insurance safeguards both the buyer and the seller from financial losses arising from title defects. These defects include errors or issues with the property’s legal ownership, such as forged documents, undisclosed heirs, or unrecorded liens. Title insurance for sellers in Washington D.C. typically costs between $300 and $400.
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Recording Fees: Recording fees are paid to the Recorder of Deeds for recording documents related to the sale of the property, such as the deed transfer. Recording fees for sellers in Washington D.C. typically range from $20 to $35.
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Attorney Fees (if using an attorney): While not mandatory, consulting with a real estate attorney is highly recommended for complex transactions involving mortgages, title issues, or multiple owners. Attorney fees for sellers in Washington D.C. typically range from $500 to $1,000.
Please note that these are just averages, and your actual closing costs may vary depending on several factors. It is best to consult with an experienced real estate attorney or title company to get a more accurate estimate of your closing costs.